Oliver Judges, Director of Property, approved the award of a lease agreement for Unit 2 Gerry Raffles Square, Stratford, to Diesel Gym CIC. This decision aims to bring a long-term vacant property back into active use, supporting community initiatives and the council's asset management objectives.

Unit 2 Gerry Raffles Square, Stratford - Award of Lease Agreement

The Director of Property, Oliver Judges, approved the granting of a new 10-year commercial lease for Unit 2 Gerry Raffles Square, Stratford¹, to Diesel Gym CIC. This decision is intended to bring a property that has been underutilised for over six years back into active occupation. The proposal aligns with the council's corporate plan, specifically contributing to A Healthier Newham and Ageing Well by supporting accessible community-based health and fitness activities, and Newham's Inclusive Economy by fostering local employment and economic activity within Stratford Town Centre and the Cultural Quarter.

The property's location near key cultural venues such as the Theatre Royal Stratford East and Stratford Picturehouse makes its activation a priority. Following an initial marketing exercise that did not yield suitable proposals, the council conducted a wider Expressions of Interest exercise in October 2024. Diesel Gym CIC emerged as the preferred occupier due to its strong operational model, social value offer, community engagement, and financial proposal.

The lease will be granted on a full repairing and insuring basis, with the tenant responsible for business rates, utilities, and service charges. Diesel Gym CIC, a Newham-based community martial arts organisation, plans to use the space as a martial arts and community fitness facility. This is expected to increase footfall and activity in the area, supporting wider health, wellbeing, and community participation objectives, as well as providing opportunities for youth engagement.

The council considered alternative options, including not proceeding with the letting, which would have resulted in continued void costs and risks associated with vacancy. Seeking an alternative occupier was rejected as Diesel Gym CIC was identified as the preferred tenant. Disposal of the asset was also considered but rejected based on recommendations from JLL, the council's external strategic property consultants, who advised retention due to the property's strategic location and income-generating potential.

The decision was made under delegated authority and is subject to a call-in period ending at midnight on 16 June 2026, with implementation possible from 17 June 2026. The financial implications include the provision of regular commercial property income to the council, with an initial 12-month rent-free period for the tenant. The lease terms are structured to ensure commerciality and risk management, aligning with the council's financial objectives and wider socio-economic priorities.